Tennessee industrial electricity rates

Analyst note

The Tennessee industrial price sat above the U.S. average in 0 of 10 years; the gap was -0.74 ¢ in 2015 and -1.92 ¢ in 2024. In the 2024 ranking Tennessee sits between Kentucky (6.50 ¢) one place above and Texas (6.12 ¢) one place below; the top of the list is 27.92 ¢ away and the bottom 0.78 ¢. Tennessee was 39th in 2015 with 6.17 ¢ and is 47th now; a fall in the table. Tennessee industrial prices rose in 3 of 9 years. The largest rise was +18.9% in 2022, and the largest fall -7.9% in 2016. The Tennessee price peaked at 6.55 ¢ in 2022 and bottomed at 5.33 ¢ in 2020; 2024 is 5.2% below the peak and +16.5% from the low. Compounded, that is +0.07% a year in Tennessee, -1.75 points against the U.S. Tennessee buys 2.24% of all U.S. industrial electricity with 0.09% of the accounts, so the average Tennessee account uses 24.81 times the national average.

Tennessee industrial customers paid 6.21 ¢ in 2024, which puts the state 47th of 51, a bottom-ten position, 1.92 ¢ under the U.S. Nine years moved the Tennessee industrial price +0.6% (+0.1% a year), behind the U.S. by 17.0 points. The sharpest year was 2022 at +18.9%; the peak came in 2022.

The latest Tennessee year moved -0.3%, so the price is flat. The Tennessee residential price of 12.42 ¢ sits 6.21 ¢ above. A Tennessee industrial account uses 1,916,740 kWh a month; priced at 6.21 ¢ that is about $119,030, and the sector buys 22.5% of Tennessee's power.

Counting revenue instead of kWh, Tennessee industrial accounts bring in 12.8% of Tennessee sector revenue on 22.5% of the kWh, a discount of 9.7 points that comes from the price level: 6.21 ¢ here against 12.42 ¢ for residential and 12.05 ¢ for commercial accounts. The average Tennessee industrial account uses 1,916,740 kWh a month, 2 of 51 among states on that measure; a residential account uses 0.00 times as much and a commercial account 0.00 times. Industrial accounts are 0.03% of the 3,710,074 accounts in Tennessee.